help me understand.

[smack513k]

ok ive been buying online for years, recently ive found places that take bitcoins. i thought it would be easy at first, like ok ill just buy some with my cc or cash....oh no no thats not the case, wtf. well after doing some reading i understand how to convert my cash for btc at walmart using certain sites, well here's where i get lost. where does my money go, like if i deposite 200$ at paypal i can login and see my account, well where is my bitcoin "account" ,who has my money, how do i use it ? i would think there is a main bitcoing site that officially run by bitcoin thats where u sign up and login at but all i could find is a bitcoin wallet app and there is no username or password with it , so how does it even relate to MY bitcoins ? i dunno if all this makes sense im tired and confused lol.

also  can someone explain some terms, hash, block, mining ? im also a little lost at  this mining stuff, do i have to mine ? i just wanna  buy bitcoin and spend it, i dont have time to mine, i work 6 days a week. lol anywayif anyone can help would be greatly appreciated.

[RaTTuS]

if only there was a thread for this
https://bitcointalk.org/index.php?topic=15918.0

[smack513k]

thanks man im sure its covered alot but what ive read so far hasnt helped me "get it " yet i also work 6 days a week so i cant read online for hours at a time

[RaTTuS]

there is no money ,
there are only calculations!


I'm sure someone will be along shortly to help better

[Gabi]

Smack, you have TONS of things to learn. You are totally disoriented 

where does my money go

People sell you bitcoins, your money go to who sells you them.

well where is my bitcoin "account"

It doesn't exist

who has my money

Bitcoin IS the money. You have dollars right? A 5$ banknote is money right? Nice, same apply for bitcoins, they are money (well, more similar to digital gold)

who has my money

Your money go to who sell you bitcoins and you have the bitcoins.

how do i use it

You need a client and you just send them to the address you want to send them to (like if you buy something online)

Please do a bit of research to avoid losing bitcoins/not understanding how it works

main bitcoing site that officially run by bitcoin

There is no "official" website, there is a main one but it's not the only one. Do a "official website" of gold exist? No, gold is just gold, no matter whatelse. Same apply for bitcoins, they exist.

where u sign up and login at but all i could find is a bitcoin wallet app and there is no username or password with it

It doesn't exist (yeah well there are some online wallets where you can send your bitcoins and manage them from there. It's like putting your money in paypal or in a bank and then manage it from there. But your money exist before you put it there! Same for bitcoin )

so how does it even relate to MY bitcoins

Here we go in the technical part

hash, block, mining ?

Technical part too

do i have to mine ?

No.

i just wanna  buy bitcoin and spend it, i dont have time to mine, i work 6 days a week

You can buy them, it's not hard, just, you can't buy them with paypal or with a credit card (that's due to chargeback, ppl buying bitcoins with paypal and then reverting the transaction... so they have both bitcoin and their money back... that's why almost no one sells bitcoins for paypal/credit card) 

[yogi]

https://en.bitcoin.it/wiki/Introduction

There's a lot to read, but it will be worth it.

[Gabi]

That's a nice explanation http://evoorhees.blogspot.it/

clients to use

http://electrum-desktop.com/ or
http://bitcoinarmory.com/

Please avoid the standard client unless you want to have it download blocks for a day 

[DannyHamilton]

Definitely take the time to read the topics linked at the discussion threads listed above.

A few specific answers to your questions in the mean time:

where does my money go

Your non-bitcoin money goes to the person/company that is selling you the bitcoin.  You will have to provide that person/company with a  bitcoin address that you get from your bitcoin wallet.  Assuming the company/person you choose to work with isn't a scammer and doesn't steal your money, your wallet will display the bitcoin when the transaction is complete.

like if i deposite 200$ at paypal i can login and see my account, well where is my bitcoin "account" ,who has my money,

If I walk up to you and hand you three $20 bills, where is your "account".  I assume when you receive the bills from me, you place them into the wallet in your back pocket?  With bitcoin, the wallet allows you to receive and spend.  The digital wallet is an analogy, it doesn't work exactly like a real leather wallet where you store your $20 bills, but the idea is that you have control of your coins, not some bank, or company.

how do i use it ?

Anybody who is willing to receive bitcoin from you will provide you with a bitcoin address.  You will use your bitcoin wallet to indicate how much of your bitcoin you want to send, and which address to send it to.

i would think there is a main bitcoing site that officially run by bitcoin thats where u sign up and login

No. Bitcoin is an open source online currency.  There is no official Bitcoin company, it is all peer-to-peer using a protocol that defines bitcoin.  Changing that protocol requires acceptance by the bitcoin community.  On the one hand, this means that you don't have to worry about the success of a single company to maintain the value of your bitcoin. There isn't a Bitcoin company for a government to shut down. On the other hand, there isn't a Bitcoin company with a help desk that you can call for help when you screw up, or don't understand something.  You have to count on the assistance of helpful people in the community.
 

all i could find is a bitcoin wallet app and there is no username or password with it , so how does it even relate to MY bitcoins ?

There are many different wallet systems that have been created by various people in the bitcoin community.  Take some time to find the one that will best serve your purposes.  They each have their own strengths and weaknesses.  For wallet programs that you install on a computer, there is a wallet that is often referred to as the "Satoshi" wallet or the "Standard" wallet. There are also "Armory", and "Electrum". Several online wallets also exist, and most of the currency exchanges will allow you to store your bitcoin with them and spend directly from the exchange without the need to first transfer to a wallet.

can someone explain some terms, hash

A mathematical process that uses data as an input generates an unpredictable number as an output. A well designed hash algorithm will have the following features:

• Given the output, it is impossible to determine what the input was
• The output will be randomly distributed within the range of possible outputs, and won't clump around a few numbers
• The range of possible outputs will be VERY LARGE

block,

A collection of bitcoin transactions that are added onto a list of all bitcoin transactions (known as the blockchain).  The block will have certain attributes that make it extremely difficult for anyone to modify it after it has been accepted by the community.  This blockchain system is used by the bitcoin wallets to ensure that nobody can create duplicate/counterfeit bitcoin and spend them.

mining ?

Serves two purposes.  First of all, anyone choosing to participate in "mining" is choosing to group together bitcoin transactions and format them into a properly structured "block" to be added to the blockchain.  The process of building an acceptable block that has all the attributes necessary is difficult and takes processor time that uses up electricity.  To reward these miners (and create an incentive for people to choose to mine), they receive any transaction fees that are included in the bitcoin transactions that they include in the block they create.  Secondly, the bitcoin protocol needed a reasonably fair way to create the bitcoin that people would be using.  It would be very unfair to simply give it all to a single person, and nobody else would be willing/wanting to use it under those circumstances.  Instead, the protocol is designed to create new bitcoin with each block that is created.  This newly created bitcoin also goes to the miner that creates the block to act as an incentive while the bitcoin concept is catching on (since there won't be many transaction fees when there aren't yet many people performing transactions).  Over time the amount of newly created bitcoin will be reduced with the expectation that the amount of transactions with fees will slowly increase to offset that reduction.

do i have to mine ?

No.  And at this point, it is generally not profitable to mine unless you are willing to invest in specialized equipment.

[Haole]

http://bitcoinarmory.com/

Please avoid the standard client unless you want to have it download blocks for a day 

Somewhat of a contradiction as one needs the standard client to use Armory apparently?

I installed Bitcoin-QT (being a rank newbie) and after a day and a half closed it and stripped it off my computer because it had still not downloaded the blockchain and due to memory usage I imagine, had rendered my computer crippled at that point.

As one who has spent tens of hours trying to get started with Bitcoin and have still not gotten to the point of getting a usable bloody client on my machine, let alone taking the plunge and buying a few bitcoin, I'm finding quite a lot of bad advice and inaccurate information about Bitcoin.  Bitcoin is still more virtual digital voodoo than a usable currency for the average person.

[DannyHamilton]

thanks man im sure its covered alot but what ive read so far hasnt helped me "get it " yet i also work 6 days a week so i cant read online for hours at a time

Bitcoin is still quite new and while there are some safeguards built in, there are still a lot of opportunities to lose your bitcoin if you don't understand what you are doing.  Please understand, when you loose your password, or accidentally delete your wallet file, or are scammed by someone taking advantage of your lack of knowledge, there isn't a Bitcoin company that you can call up and complain to so that they can fix it for you.  Under those circumstances, your money is just gone.  Much like if you accidentally drop a stack of $20 bills into a campfire.

[DannyHamilton]

. . .I'm finding quite a lot of bad advice and inaccurate information about Bitcoin.  Bitcoin is still more virtual digital voodoo than a usable currency for the average person.

There are a lot of people (myself included) who think they understand bitcoin, and offer their advice to try to help out those that are still learning.  Unfortunately, many (myself included?) of those people don't really understand it, they just have misplaced faith in their own misunderstanding.  This can lead to a lot of bad advice.  The tricky part is finding the experts that really do know and are capable of explaining to those who don't in an easy to understand manner.

The wallet you choose needs to fit your purposes.  Will you be spending the bitcoin as fast as you receive it?  Will you be holding on to any? If so, for how long (hours?, days?, months? years?).  Will be holding on to an amount that you can handle losing, or are you interested in maximum security?  Are you technically adept,  or do you need something rather user friendly?

It can help to find the correct sub-forum here and ask questions about the things you are having difficulty with, but it will be up to you to determine if the advice you are receiving is coming from an actual expert.

[RodeoX]

As a side note, the lack of any central authority is one of bitcoins most powerful aspects. Compare them to frequent flier miles for example.  The airline can change the value of the miles whenever they like, and to their own advantage. NO ONE can do such a thing with your bitcoins.

[dishwara]

http://bitcoinarmory.com/

Please avoid the standard client unless you want to have it download blocks for a day 

Somewhat of a contradiction as one needs the standard client to use Armory apparently?

I installed Bitcoin-QT (being a rank newbie) and after a day and a half closed it and stripped it off my computer because it had still not downloaded the blockchain and due to memory usage I imagine, had rendered my computer crippled at that point.

As one who has spent tens of hours trying to get started with Bitcoin and have still not gotten to the point of getting a usable bloody client on my machine, let alone taking the plunge and buying a few bitcoin, I'm finding quite a lot of bad advice and inaccurate information about Bitcoin.  Bitcoin is still more virtual digital voodoo than a usable currency for the average person.

I some where saw links to download block chains using browser.
Can't able to remember it.
If some one know it please post.

[Gabi]

http://bitcoinarmory.com/

Please avoid the standard client unless you want to have it download blocks for a day 

Somewhat of a contradiction as one needs the standard client to use Armory apparently?

I linked the electrum client too. If you know other clients, link them please, i know only these 2 lightweight clients.

[Haole]

http://bitcoinarmory.com/

Please avoid the standard client unless you want to have it download blocks for a day 

Somewhat of a contradiction as one needs the standard client to use Armory apparently?

I linked the electrum client too. If you know other clients, link them please, i know only these 2 lightweight clients.

Hi Gabi,

I am brand new to Bitcoin and not very computer savvy.  All I want to do is be able to put a client on my laptop, buy some bitcoins for savings in the meantime and perhaps someday execute a transaction or two.  I'm finding that thus far Bitcoin is a ridiculously complicated concept and have yet to put a client on my machine that a dummy like me can use.  I recently installed Bitcoin-Qt on my Macbook and after a day and a half of trying to download the blockchain I stripped the POS from my system so that rules-out use of Electrum in my case.

Personally I can't understand how Bitcoin can even be called a currency at this point as it's certainly not usable for the average person.  Maybe it should be called Crypto-Voodoo-Digital-Coin until anyone but computer geeks can use it confidently? 

[DannyHamilton]

. . .I recently installed Bitcoin-Qt on my Macbook and after a day and a half of trying to download the blockchain I stripped the POS from my system so that rules-out use of Electrum in my case. . .

I'm not aware of a need to install Bitcoin-Qt to use Electrum.  Are you sure about that?

[Haole]

. . .I recently installed Bitcoin-Qt on my Macbook and after a day and a half of trying to download the blockchain I stripped the POS from my system so that rules-out use of Electrum in my case. . .

I'm not aware of a need to install Bitcoin-Qt to use Electrum.  Are you sure about that?

Sorry, I meant Armory and not Electrum.

I am absolutely not sure of that but I just read something to that effect somewhere this morning.  Given my success in learning how to use Bitcoin and that I can't remember where I read this I'm not even sure that I don't get transported cognitively through a worm hole into another dimension every time I read about Bitcoin actually...

You undoubtedly know much more about this than I do Danny, so am I to understand that Electrum is a standalone client and perhaps something an idiot like me could try with some success?

Thanks.

[Deafboy]

Congratulation guys on confusing any potential newbies reading this
What should have been done:
1) Advise one of the client software. Doesn't matter which one, but (this is the important part) ONLY ONE. Prefer one with easy enough installation
2) Help the newb buy some coins and store them. In the client. DO NOT confuse him with brain wallet or paper wallet. Not even talking about Armory-like clients that depends on another client!
When he finally understand how to buy btc and can use the client comfortably continue with:
3) If you do not like how the client looks like or behave, take a look at some other client SW, for example XY
4) If he is able to understand pub&priv. keys crypto, and he's not sure if bitcoins in wallet file are safe enough. Tell him about brain wallets and paper wallets.

Happy new bitcoin user

Remember, using bitcoin is easy if we explain it from the users point of view.
How complicated could be sending a wire transfer via internet banking to instawire.org?


Btw. you don't have to install Bitcoin-qt to use electrum.

[DannyHamilton]

1) Advise one of the client software. Doesn't matter which one, but (this is the important part) ONLY ONE. Prefer one with easy enough installation

And which client would you have advised?

[Haole]

Would it be sufficient and secure enough to install version 1.0 of Electrum rather than go with ver. 1.2? 

Install Homebrew.
Install dependencies brew install qt pyqt.
Install Electrum-1.2.zip
execute 'python electrum'

There is nothing on Homebrew's site to download and when I try and execute the command line in Terminal (brew install qt pyqt) nothing happens.  Not that this is any surprise to me now...